My Plate Might Be Too Full

[MonaLyssa33]

This post is more of a vent for me than anything else.

I've gotten it into my head that I really, really, really want to buy a house. Not just for me, but also for my cats. I currently live in a 400 square foot basement studio apartment that I pay $800 a month for. It's steep, to say the least, and I can barely afford it. I've been looking at houses in my area and I can easily buy an older home with triple (sometimes quadruple) the space for half the amount I pay in rent. My problem is I have no savings for a down payment because I'm barely making ends meet to cover the cost of my rent, my exorbitant student loan payments, and all of my other bills.

On top of everything, I am going back to school in the fall to earn my Master's degree and I've been casually looking for a new job. I know I really should stay at my job because my health insurance is excellent, my coworkers are amazing, and I will get a lot of money for tuition reimbursement making the cost of my 2-year program out of pocket be less than $5K, but I'm not happy there (or at least as happy as I used to be) because the higher-ups in the county (I work for a public library) are ruining everything.

I have options though. I'm sure if I asked my parents for help to get a down payment together, they'd be willing to help me out and I know there are a lot of programs for first-time homebuyers, so I've been looking into those. I've started the process to get pre-qualified for a mortgage and while I do feel a little overwhelmed, I think it's something I can handle.

 

[EmersonandEvie]

Look into no down payment loans. I know several people that took advantage of them. It was one loan that was offered to us, but we took another because the interest was lower. The loan we chose required that we put down...I think 3%?

If you are saving money each month, I think you, your cats, and your wallet will be happier. What I would recommend is requesting that the seller pay for a 1 year home warranty that would cover any major appliance if something went wrong. Also, look at other areas you can cut costs. Get Cricket cell phone plans, switch internet providers so you can get the 1 or 2 year intro prices, do you really need cable AND Netflix AND Hulu, etc. (These are just examples obviously, I don't know your actual finances and what you do and don't have). Be aware that a bigger space= higher electrical bills, higher water bills, plus whatever services you get (trash, recycling, etc.).

If your parents are willing to help, I think it would be smarter to take the money they gave you and put it into an emergency savings account.

I would stick with your job...just grin and bear it...until you are done. Good health insurance is worth its weight in gold. 75% of work is the people you work with- let them be your reason to go in every day!

 

[neely]

I would stick with your job...just grin and bear it...until you are done. Good health insurance is worth its weight in gold. 75% of work is the people you work with- let them be your reason to go in every day!

Ditto!

Before you rush into anything, i.e. applying for a mortgage and buying a house, it might be to your benefit to stay in your present job until you get your master's degree since you mentioned your employer offers tuition reimbursement. Excellent health insurance is an added bonus and amazing coworkers are gems. I would recommend sitting down and making a pros/cons list before becoming a homeowner. There's always time to purchase a home although I understand your frustration with the cost of rent and living in tight quarters.

 

[JamesCalifornia]

~ Have you considered a small income producing property like a duplex or home with a guest house ? If the income is documented and consistent part of it will help qualify your loan .
Something to think about ...

 

[MonaLyssa33]

~ Have you considered a small income producing property like a duplex or home with a guest house ? If the income is documented and consistent part of it will help qualify your loan .
Something to think about ...

One of the houses I'm interested in has been completely gutted because of a fire, so if I were to buy that house, I think I'd like to make part of it into an apartment or something.

 

[MonaLyssa33]

Look into no down payment loans. I know several people that took advantage of them. It was one loan that was offered to us, but we took another because the interest was lower. The loan we chose required that we put down...I think 3%?

If you are saving money each month, I think you, your cats, and your wallet will be happier. What I would recommend is requesting that the seller pay for a 1 year home warranty that would cover any major appliance if something went wrong. Also, look at other areas you can cut costs. Get Cricket cell phone plans, switch internet providers so you can get the 1 or 2 year intro prices, do you really need cable AND Netflix AND Hulu, etc. (These are just examples obviously, I don't know your actual finances and what you do and don't have). Be aware that a bigger space= higher electrical bills, higher water bills, plus whatever services you get.

I'm aiming for a 3% down payment and knowing what I can actually afford it wouldn't be very much (like $3,000, if that). I wish there were things I could cut from my budget, but I'm on a family phone plan with my parents (which I do pay my portion of), I don't have cable and the only subscription service I have is just $1 a month. I've had a series of unexpected expenses the last few months (vet bills, new brakes, new tires) that have prevented me from catching up with things though.

 

[Mia6]

I think JamesCalifornia 's idea is brilliant.